Metricon sells majority stake to Japanese building group

Fresh from celebrating a decade of dominance as Australia’s largest residential builder with more than 44,000 builds, Metricon has just sold a 51 per cent stake in the company to Sumitomo Forestry Australia.

The company is a subsidiary of a Japanese group which already has an interest in the Australian construction industry.

Sumitomo Forestry’s first step into the Australian market was in 2008 with the acquisition of Henley Homes along with several other boutique brands.

Sumitomo Forestry Group headquartered in Tokyo, and its affiliate companies, who boasts a capital stock of ¥55,088 million, employs 24,815 individuals on a consolidated basis.

This strategic partnership will see Sumitomo Forestry acquiring 51 per cent of Metricon, post completion of conditions while also providing a pathway towards 100 per cent ownership.

Sumitomo Forestry, known for its global expertise in real estate and global wood-related industries, has a great track record of successful investments in the Australian home building industry, with this partnership marking a significant investment in the future positioning of Metricon.

Metricon chief executive officer Brad Duggan said that there had been months of discussions and negotiations, and while this strategic partnership marked the beginning of a new chapter, at Metricon it will be business as usual.

“Metricon has worked hard over the past 24 months to return the group to its position of strength, and we are ecstatic that this work has resulted in the establishment of such an important partnership with Sumitomo Forestry.

“This partnership enhances Metricon’s readiness to respond to the opportunities in the Australian housing market.

“Both Metricon and Sumitomo Forestry see the great advantages that can be harnessed from working together.”

Metricon believes the Australian housing industry, more than ever, needs strong participants to solve the issues it currently faces, and this partnership will further build Metricon’s market leading position.

With the sale and purchase agreement signed, Metricon expect to announce the successfully completed transaction in the coming weeks.

As part of this transaction, Metricon will become a consolidated subsidiary of Sumitomo Forestry which is listed on the Tokyo Stock Exchange.

Mr Duggan said that under the terms of the deal, Metricon will retain its unique operating model, ensuring that there will be minimal change to its structure, service, market offerings or brand.

Sumitomo Forestry Australia managing director Yasuhiro Odagane said the acquisition was key to helping Sumitomo Forestry achieve its goal of addressing the long-standing housing shortage in Australia.

“This acquisition enables our group to expand the business areas in each state, establishing Sumitomo Forestry as the number one builder in Australia and, most importantly, allowing us to make a substantial contribution to the provision of social infrastructure.”